As foreign investors continue to yank money out of the U.K. as a result of the Brexit uncertainty, the pound will continue to come under pressure.
“The problem we have here is risk sentiment,” Steven Saywell, global head of foreign-exchange strategy at BNP Paribas SA, told Bloomberg. Due to its current-account deficit, Britain “needs to attract funds in to balance its books. When the market starts to become nervous about that, those flows dry up,” hurting the pound.
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The pound has been the worst performing asset since the U.K.’s decision to leave the E.U., and the majority of analysts who’ve changed their forecasts since the referendum results are now projecting the currency to remain depressed.
For more information on the GBP, visit our British pound category.
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